Destiny Pharma

LN: DEST

£15.6mmarket cap

35.5plast close

Destiny Pharma is dedicated to the discovery, development and commercialisation of new antimicrobial agents that have unique properties that improve outcomes for patients. Destiny’s first product, XF-73, is in a US Phase IIb clinical study.

Investment summary

Destiny Pharma is a virtual UK antimicrobial discovery company in a Phase IIb clinical study in the US. Destiny’s XF series of antimicrobial agents are novel, rapidly bactericidal and not associated with bacterial resistance, which typically limits the use of other antimicrobial agents. This makes Destiny’s lead product, XF-73, ideal for the prevention of post-operative staphylococcal infections, an indication in which no other drugs have been approved. The activity of the XF-series against resistant bacteria may also have utility in the treatment of infections with a biofilm component like cystic fibrosis. We forecast Destiny’s cash reach into 2021, with Phase IIb results for XF-73 in H121.

Y/E Dec

Revenue (£m)

EBITDA (£m)

PBT (£m)

EPS (fd) (p)

P/E (x)

P/CF (x)

2018A

0.0

(5.3)

(6.0)

(11.86)

N/A

N/A

2019A

0.3

(5.4)

(5.5)

(10.77)

N/A

N/A

2020E

0.0

(4.7)

(4.6)

(8.31)

N/A

N/A

2021E

0.0

(6.1)

(6.1)

(12.32)

N/A

N/A

Industry outlook

While there are valid commercial criticisms of antibiotic development, the growing problem of antimicrobial resistance is making non-dilutive and alternative funding methods available to make antimicrobial drug development easier on companies. In addition, resistance has not been observed against Destiny’s agents and their new preventative indications make antibiotic stewardship less of an issue.